Acquisition of FD Communities, LLC's detached housing business by Stanley-Martin Communities, LLC (Newsletter) Company Release

(2017/12/27)

Category: Miscellaneous

Release issuing company: Daiwa House Industry Co., Ltd.

■ Expanding sales area for detached houses in the United States

On December 20, 2017, Stanley-Martin Communities, LLC (hereafter referred to as Stanley-Martin) of the Daiwa House Group announced the launch of detached houses in the United States. A business transfer agreement was signed with FD Communities, LLC (hereinafter referred to as Front Door), which operates the business, and Front Door's business in Atlanta, Georgia and Charleston, South Carolina will be transferred in late January 2018 (planned). I was.




1. Reasons for the business transfer
In the Daiwa House Group's 5th Medium-term Management Plan, which ends in the fiscal year ending March 2019, we have set a target of 4 trillion yen in net sales in preparation for future environmental changes. The theme is to build a foundation. In the overseas business, based on the basic policy of “acceleration of overseas expansion,” we will focus on the United States and Australia, where stable growth is expected, and ASEAN, where medium- to long-term growth is expected. We aim to achieve 100 million yen.
On February 13, 2017, in the United States, Daiwa House USA Inc. (Headquarters: Delaware, USA; President, Stanley Martin), which operates a detached house business in the eastern region (Virginia, North Carolina, Maryland) : Takeshi Kosokabe) and entered the detached housing business in the United States.



With this in mind, we have decided to expand our business area in the United States by taking over all of Front Door's major detached housing businesses in Georgia and Atlanta through Stanley Martin. .

● Business area expansion (business area of ​​Stanley Martin and Front Door)


■ Areas and districts to enter
State of Maryland
・Maryland

Virginia
Northern Virginia, Richmond
Charlottesville
North Carolina
Raleigh
South Carolina
Charleston
Georgia
Atlanta
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2. Business and property to be transferred
Front Door currently operates detached housing business in Georgia, South Carolina, and Florida. Acquisition of Front Door's assets in the state.























Employees plan to join Stanley-Martin Company.
*1. A consortium. An organization in which multiple companies do business jointly.

3. Schedule
December 5, 2017 Stanley-Martin Board of Directors Resolution
December 20, 2017 Business Transfer Agreement Conclusion Date
Late January 2018 (planned) Execution of business transfer

>4. Impact on business performance
The impact of this business transfer on our consolidated business performance will be minor.

5. Company profile of both companies







Business transfer company



6. Areas of expansion/U.S. housing market
Front Door's detached housing business is located in the Atlanta, Georgia metropolitan area, which boasts a population of approximately 5.8 million people. In addition, Coca-Cola, Delta Air Lines, and CNN have their headquarters in the Atlanta metropolitan area, and it has become the center of business, sports, and culture in the southern United States, hosting the Olympic Games in 1996.
　Because of this diverse industrial base, the population and employment are increasing, and the middle-class household income level is high, making it a very attractive area for expansion as one of the largest housing markets in the United States.
On the other hand, the population of the Charleston-North Charleston-Somerville metropolitan area in South Carolina is about 600,000. Charleston, in particular, is a port city and is known as a beautiful and historic city in the southeastern United States.
　From the perspective of the US housing market, the population growth rate of the "Smile Curve Area" from the northwest (Seattle) to the south (Houston) and east (Washington, D.C.) was about 10% between 2000 and 2010. The population has increased by more than 1.5% annually, and it is attracting attention as an area where the population is expected to continue growing in the future.




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